First Southwest will continue operating under that name, and its executive team will stay in place.

“It’s business as usual,” White said. “We’re hoping we can bring strength to them.”

The investment bank will have a much larger capital base behind it, notes First Southwest CEO Hill Feinberg. First Southwest had a capital base of about $80 million. Assuming the deal goes through, the combined firm will operate with about $400 million in capital.

“First Southwest was not leveraged 30-1,” Feinberg said. In fact, before PlainsCapital entered the picture, First Southwest was looking to buy a commercial bank that would have been a much smaller operation than PlainsCapital.

PlainsCapital Bank, a Dallas-based institution with roots in Lubbock, has $3.4 billion in total assets. It focuses on commercial middle market business and high-net-worth individuals. PlainsCapital has 1,800 employees statewide. First Southwest has $617 million in assets, 368 employees, and 22 offices in 10 states and the District of Columbia.

cwatt@bizjournals.com | 214-706-7123

Industries:

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.